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Resimac Group (Resimac or the Group) has revealed an increase of assets under management (AUM) of 1 per cent to $14.2 billion in its results for the half year ending 31 December 2024 (1H25).
This was comprised of an increase in home loans of $0.1 billion to $13 billion (up 1 per cent) and a rise in asset finance loans of $0.1 billion to $1.2 billion (up 9 per cent).
Resimac reported origination volumes of $2.8 billion (up 5.6 per cent when compared to 2H24) and application volumes of $5 billion, up by 39 per cent.
Commenting on the results, interim CEO Susan Hansen said households and small businesses have been challenged by higher-than-expected interest rates and increased cost of living over the past six months.
“These economic pressures have affected the performance of our loan portfolios, as evidenced by rising arrears, financial hardship applications, and defaults, resulting in increased write-offs and collective provisioning,” Hansen said.
Indeed, Resimac reported impairment expenses of $14.8 million, with net write-offs totalling $6.6 million.
Hansen said: “The much-anticipated interest rate reductions expected in the 2025 calendar year will be a welcome relief to our customers.
“Despite a half-on-half decrease in normalised NPAT due to higher impairment expenses, the Group’s operating profit grew by over 20 per cent.
“The home loan segment saw significantly higher application and settlement volumes of $4.3 billion and $2.4 billion respectively, boosting AUM levels and net interest income for the period. Similarly, the asset finance segment showed pleasing growth with an increase in AUM by 18 per cent on an annualised basis, providing a strong foundation for 2H25.”
Broker commitment and diversification
In regard to Resimac’s future strategic focus, the Group confirmed that it will remain focused on “being Australia’s top non-bank lender through a broker and customer-focused growth strategy”.
The results revealed that the lender continued to strengthen broker partnerships through the ongoing establishment of automation and digitisation of home loan processes.
According to Resimac, active broker numbers increased by 25 per cent compared to the previous half after improving “speed, ease and consistency” over 1H25.
Last year, Resimac entered an agreement with Westpac to purchase an auto loan portfolio of receivables and leases with an expected value of around $1.5 billion with the transaction expected to be completed by the end of the month.
Hansen said: “The Westpac auto portfolio acquisition aligns with Resimac’s asset finance division’s strategic growth objectives, allowing the Group to access over 100,000 new customers and introduce new products to its offerings.
“We continue to deliver on our strategic priorities with the ongoing digital transformation of our business.
“The balance sheet is showing signs of growth, the portfolio is continually being diversified, and we are achieving positive funding outcomes while remaining committed to assisting our customers during these challenging times.”
[RELATED: Resimac announces billion-dollar Westpac portfolio acquisition]
